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The 2020 ISG Provider Lens™ Healthcare Digital Services Report

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The 2020 ISG Provider Lens™ Healthcare Digital Services Report Healthcare Digital A research report Services comparing provider strengths, challenges U.S. 2020 and competitive differentiators Quadrant Report Customized report courtesy of: March 2021 ISG Provider Lens™ Quadrant Report | March 2021 Section Name About this Report Information Services Group Inc. is solely responsible for the content of this report. Un- ISG Provider Lens™ delivers leading-edge and actionable research studies, reports less otherwise cited, all content, including illustrations, research, conclusions, assertions and consulting services focused on technology and service providers’ strengths and and positions contained in this report were developed by, and are the sole property of weaknesses and how they are positioned relative to their peers in the market. These Information Services Group Inc. reports provide influential insights accessed by our large pool of advisors who are actively advising outsourcing deals as well as large numbers of ISG enterprise clients The research and analysis presented in this report includes research from the ISG who are potential outsourcers. Provider Lens™ program, ongoing ISG Research programs, interviews with ISG advisors, briefings with services providers and analysis of publicly available market information For more information about ISG Provider Lens™ studies, please email from multiple sources. The data collected for this report represents information that [email protected], call +1.203.454.3900, or visit ISG Provider Lens™. ISG believes to be current as of December 2020 for providers who actively participated as well as for providers who did not. ISG recognizes that many mergers and acquisitions have taken place since that time, but those changes are not reflected in this report. All revenue references are in U.S. dollars ($US) unless noted. ISG Research™ provides subscription research, advisory consulting and executive The lead author for this report is Ron Exler. The editors are Ipshita Sengupta, Ambrosia event services focused on market trends and disruptive technologies driving change in Sabrina and Sajina B. The research analysts are Ammar Mohammed and Sidhanth business computing. ISG Research™ delivers guidance that helps businesses accelerate Prasad and the data analyst is Bhanwar Chauhan. The quality and consistency advisors growth and create more value. are Bob Krohn, James Burke and Tony Mataya. For more information about ISG Research™ subscriptions, please email [email protected], call +1.203.454.3900, or visit research.isg-one.com. 2 © 2021 Information Services Group, Inc. All Rights Reserved. 1 Executive Summary © 2021 Information Services Group, Inc. All Rights Reserved. Reproduction of this publication in any form without prior 4 Introduction permission is strictly prohibited. Information contained in this 13 Payer Digital Transformation Services report is based on the best available and reliable resources. Opinions expressed in this report reflect ISG’s judgment at the 18 Provider Digital Transformation Services time of this report and are subject to change without notice. 24 Payer Business Process as a Service ISG has no liability for omissions, errors or completeness of information in this report. ISG Research™ and ISG Provider Lens™ 28 Methodology are trademarks of Information Services Group, Inc. ISG Provider Lens™ Quadrant Report | March 2021 Section Name Executive Summary EXECUTIVE SUMMARY The global pandemic of COVID-19 unquestionably accelerated the move to digital services Interoperability remains a challenge for the industry, resulting in inadequate data sharing, in the healthcare industry. However, ISG considers this the acceleration of pre-pandemic especially between payers and providers. The Fast Healthcare Interoperability Resources activity by healthcare providers and payers to enhance operations, reduce costs and (FHIR) standard was developed to exchange health information. In December, the U.S. Cen- improve engagement with their stakeholders using digital services. ters for Medicare and Medicaid Services (CMS) issued a proposed rule to require Medicaid, Children’s Health Insurance Program (CHIP) and Qualified Health Plan (QHP) programs to For years, new players have been entering the healthcare markets from the technology build HL7 FHIR-based APIs to support data exchange and prior authorization. The rule also solutions business, including hyperscale cloud behemoths such as Amazon, Google and includes a proposed API standard for healthcare operations nationwide. The 21st Century Microsoft. In October 2020, Microsoft released Microsoft Cloud for Healthcare, which Cures Act: Information Blocking, Interoperability, and the Office of the National Coordinator includes data models, cross-cloud connectors, workflows, application programming for Health Information Technology (ONC) Health IT Certification Program Final Rule (ONC interfaces (APIs) and built-in healthcare-specific components, along with its horizontal cloud Cures Act Final Rule) requires health IT developers to comply with a set of certifications, apps and services. Salesforce Health Cloud is a popular healthcare customer relationship APIs and other data access improvements. In April, also to address interoperability Google management (CRM) solution supported by most service providers in this study. At present, Cloud rolled out the general availability of Cloud Healthcare API, a tool to make it easier for health technology stalwarts such as Allscripts, Cerner and Optum are expanding their health systems and providers to connect data across different sources and share that data service offerings, posing a competitive threat to traditional IT service providers. with patients. In December, Amazon Web Services (AWS) launched HealthLake for storage The service providers in this industry are ready for a change not only because of new and analysis of data, automatically structured into the FHIR standard. All the service entrants and the shift to digital and cloud but also because of contract expiration. According providers in this study embrace the FHIR standard in their digital transformation programs. to ISG Research, between 2021 and 2023, a total of 384 IT outsourcing (ITO) deals are Automation is key to digital services as healthcare enterprises gradually adopt robotic expected to expire in the healthcare industry in North America. Application development process automation (RPA) and artificial intelligence (AI) technologies to improve specific and management (ADM) and infrastructure, as well as pure ADM services, account for about processes, including claims processing, medical diagnosis and patient care management. 74 percent of the total expiring deals by total contract value. As healthcare companies in With the ongoing COVID-19 pandemic, there is an increased adoption of telemedicine the U.S. seek to control costs and change with the market, digital transformation is growing, systems as doctors must overcome lockdowns and reduce in-person exposure risks to along with business process as a service (BPaaS). 1 © 2021 Information Services Group, Inc. All Rights Reserved. ISG Provider Lens™ Quadrant Report | JuniMarch 2018 2021 Executive Summary treat their patients. Healthcare providers are deploying connected healthcare monitoring ecosystems will determine the “new future” for healthcare payers and providers. It is against devices at an explosive rate: According to the Consumer Technology Association, the U.S. this backdrop that digital services will be central to positive outcomes in health and the shipment revenue rose by 73 percent in 2020 and is forecast to reach US$1.2 billion by health business. 2024. Security is an essential component of a digital services ecosystem for employee Payer Digital Transformation Services productivity and patient record protection. In addition, ride-hailing platform companies are joining with their own services. Lyft Healthcare already provides non-emergency According to the U.S. Census Bureau, the percentage of people with health insurance medical transportation (NEMT) services in the U.S., and it recently partnered with Anthem, coverage for all or part of 2019 (the most recent year studied) was 92 percent, and private JPMorgan Chase, United Way and others to get people in underserved communities to health insurance continued to be more prevalent than public, covering 68 percent and 34 COVID-19 vaccination sites. percent of the population, respectively. However, the insured are dissatisfied with their The COVID-19 pandemic will continue to influence the behavior of U.S. policymakers, health insurance companies. The American Customer Satisfaction Index (ACSI) shows that citizens and companies in the healthcare ecosystem in 2021 as they take a fresh look at Americans were less satisfied with their health insurance in 2020, and the discontent is the business of healthcare management in the war against this disease that is dragging permeating nearly the entire industry. Member satisfaction weakened by 2.7 percent to an onward. In early January 2021, the U.S. Department of Health and Human Services (HHS) ACSI score of 72, bringing the industry to its lowest point since 2016. Claims are becoming renewed the declaration of the public health emergency from the COVID-19 pandemic, harder to submit and processing is taking longer. However, the U.S. payers seek to remedy extending key waivers for regulations on services such as telehealth until April. Recent these issues, and digital transformation helps them meet member service requirements, executive
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